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Lawmakers ask US Treasury to protect direct pay recipients from debt collectors confiscating their funds.
In a letter sent Thursday to the US Treasury Secretary Stephen Mnuchin (Steven Mnuchin), Senators Sherrod brown (Sherrod Brown) and Josh hawley, called on the U.S. Treasury to protect a specific category of citizens from confiscation, or «frosts» Pandemic Relief Program Funds.
The payments are part of a more than $ 2 trillion financial assistance bill known as the CARES Act, signed late last month to ease the financial burden from the fallout from the coronavirus pandemic. The law provides for one-time direct payments of up to $ 1,200 for individuals and $ 2,400 for couples, including an additional $ 500 for each child.
«Congress Endorses These Critical Aid Measures To Help American Families Pay For Food, Drugs And Other Essentials During The Coronavirus (COVID-19) Pandemic And Subsequent Economic Crisis», – by Senators Hawley and Brown.
However, the bill clearly does not protect these payments from forfeiture for debt, and Senators Hawley and Brown are calling for protection of these funds, with the exception of alimony. The Treasury is already using its powers to protect social security payments from a similar withdrawal.
Senators Hawley and Brown propose that the Treasury be able to enforce rules that protect social security and other federal payments from private debt collection to direct support payments withdrawal. The Treasury can also issue new rules or guidelines, they said..
«If the Treasury does not take any action, direct payments under the CARES Act may be confiscated by collectors. This is not what Congress intended to do», – they said.
Economic activist groups, including the National Consumer Law Center, have pushed the Treasury to make changes. But Congress and the Treasury are busy taking on the biggest economic initiatives right now. This includes working through a $ 350 billion small loan program and, thereafter, working to roll out a cash disbursement mechanism for long-suffering industries such as the aerospace industry..
«Everyone sympathizes», – said the deputy director of the National Center for Consumer Rights Protection Lauren saunders (Lauren Saunders), – «but they all have other things to do».
National Consumer Advocacy Center Calls For State Governments To Intervene If Treasury Does Not Do It.
«Direct Support Payments Coming Soon», – Saunders said. «If the states do not act immediately, in some cases, people will have a very bad time.», – she said, noting that collectors could also freeze debtors’ bank accounts.